Money News

SAYE plans 'ideal for saving amid financial crisis'

British workers should be allowed increased access to save-as-you-earn (SAYE) plans amid the current financial crisis, according to ifs ProShare.

Phil Hall, head of the independent employee share plan representative body, believes SAYE plans are both a risk-free and tax-efficient form of saving.

SAYE vehicles enable workers invest in a savings scheme over a fixed period and also provide them with opportunities to acquire shares in their companies for discounted prices.

Currently the maximum employees can deposit into a SAYE plan is £250 a month, but ifs ProShare believes this total should have been increased in line with inflation since its introduction in 1991 - which would have increased the payment limit to more than £400.

"Employee share plans are utilised by employees with low, middle and high incomes because they provide benefits to all," Mr Hall said.

His firm also cited Treasury data which showed that a third of SAYE savers are on an income of less than £21,000 a year - suggesting that workers on lower salaries would benefit from being able to invest more in such vehicles.